Just as Nepal Rastra Bank (NRB) distributed licenses to microfinance companies to carry out small transactions in rural areas, Nepal Insurance Commission (NIC) also distributed licenses to microinsurance companies to carry out small insurance transactions.
NIC distributed licenses to three companies to carry out micro life insurance and to four companies to carry out non-life insurance companies.
Out of seven under-operation microinsurance companies, five have already approved IPO proposals from their AGM.
Krest Micro Life approved the IPO proposal through AGM on March 18 while Guardian Micro Life approved IPO approval on February 28.
Similarly, Star Micro Insurance and Protective Micro Insurance approved IPO proposal from AGM on March 10 while Nepal Micro Insurance approved the proposal on March 4.
Meanwhile, two microfinance companies are yet to issue the IPO. Super Laghubitta Sanstha, headquartered at Tulsipur, Dang and Swastik Laghubitta Bittiya Sanstha, headquartered at Lahan, Siraha are yet to issued the IPO.
Out of them, Swastik Laghubitta has already appointed Nabil Investment Banking as issue manager. Moreover, the company has sought approval to SEBON to issue 80,000 units of shares on February 7. The current paid-up capital of Rs 12 million will reach R 20 million after the IPO issue.
Moreover, Salpa Development Bank is also yet to issue IPO. The company is headquartered at Diktel, Khotang and ahs paid-up capital of Rs 350 million.
